Here’s the thing, most of us need money. Money is a funny thing, because in and of its self, its just paper or metal that has close to no intrinsic value, yet we all need it in at least one form or another. Creating passive/residual income can be a life changer.
Does it matter where the money comes from?
The mass majority of folks earn money the “traditional” way of punching the time clock and trading time for money (this is often how the bulk of one’s time and existence is spent (post education – think hamster on a treadmill) so that the rest of life can be accommodated and paid for. This system generally works alright, but the tradeoff can be pretty steep: long hours, horrible commutes, sacrificing time with family and friends. Sometimes it’s even physically taxing or harming to the body. This system is the equivalent of trading time and talents to build someone else’s dream and business. And for a lot of people, this system works just perfectly for them.
But there is another way: working for yourself, using your time & talents building your own dream. This can take many, many forms, from buying into a franchise with its big up-front costs and continued time investment. Creating a new product or service that fills a gap or need no one realized they had or a better one then what is currently available. Or monetizing your talents, gifts, passions … are you a singer, dancer, writer, magician, or voice over artist? The possibilities are endless.
For me, I left the “comfort” of a J.O.B. 14 years ago and have been on my own making my way ever since. As a photographer I landed in stock photography (on line licensing of photos for use) and shortly after I began traveling and teaching photography as well. For several years come tax time I basically had two companies to report on my returns. A few years back now conditions changed and the income was falling … so I branched out.
I added a different stock company to my roster, branched out to work with an additional company and added something totally and completely different … doTERRA essential Oils. There are now five companies to report on this tax season!
So why am I getting all up in my tax business here? Well, it’s because three of those five companies provides me with what is called passive or residual income.
Passive/ residual income happens when you put the majority of work in up-front and then earn money for years afterwards with a much smaller investment of time once things are rolling. For me that would be taking pictures, processing and uploading them to one of my agencies OR introducing people to doTERRA and the amazing benefits of essential oils, which I really enjoy because it’s relational and completely different then the other things I do.
Passive/residual income does take work, but it’s your work and building your dream which in the end results in time and lifestyle freedom.
While this kind of work isn’t for everyone, if the 9 to 5 scene, ceiling limits on your income, building someone else’s dreams or lack of freedom a traditional job offers isn’t your thing, building a passive stream of income might be just what you’re looking for.
Next week I’ll talk a little bit more passive/residual income and the importance of creating multiple streams of income.